Episode #125 of the Stack Overflow podcast is here. We talk Tilde Club and mechanical keyboards. Listen now

Questions tagged [labor-economics]

Labor economics is the branch of microeconomics that studies labor markets and its peculiarities. Labor economists usually study topics such as career choice, returns to schooling, determinants of labor productivity, wages, gender and racial gaps.

Filter by
Sorted by
Tagged with
-2
votes
1answer
77 views

Labor market supply optimization [closed]

How do I optimise this type of problem? I have read something about applying the chain rule to find the first order condition but can't imagine how to express it or solve it. Can somebody give me a ...
1
vote
1answer
129 views

Effect of changing Non Labor Income on Consumption-Leisure problem

Given a Utility function $U(c,l) = c - \frac{1}{2}l^2$ , where $c$ is the consumption and $l$ is the number of hours of labour. Let $L$ be the maximum amount of labor, so the amount of leisure is $L - ...
3
votes
1answer
998 views

Sample weights in Stata: fweight vs. pweight

I'm working with IPUMS ACS and Census data in Stata. I'm interested in learning about income distributions and variability for specific subpopulations defined by education level, occupation, race and ...
3
votes
1answer
115 views

Why the difference in productivity and wage trend in the UK economy?

In reading this article from FT, we come across two graphs: and Shouldn't real wages have a similar trend to productivity? Why was there that discrepancy since the 2009 until 2014? Maybe some other ...
1
vote
1answer
43 views

Revenue maximization same as increase contribution margins?

Under which condition, will it be the same whether you choose to use revenue maximization or to increase contribution margins? In what industry is this possible? In my thought process, I was ...
8
votes
0answers
293 views

Local and Central Wage Bargaining: What Is the Difference?

Consider the following setting: Profit maximizing firms with production functions $\Pi(w,L)$, where $w$ is the wage and $L$ is employment. Unions who want to maximize the expected utility of their ...
7
votes
6answers
930 views

Graduate Level Textbook on Labor Economics and Macro-Labor

What would be good textbooks at the graduate level that deal with Labor Economics and Labor-Macro (As in, Equilibrium Unemployment Theory, Shimer Puzzle etc)?
5
votes
4answers
285 views

Reference request on “post-scarcity” economics?

Some friends and I have been discussing, speculatively, what might happen in the future after technology/increased automation greatly reduces the need for human labor. The Marxists / leftists among ...
1
vote
1answer
43 views

Directed search with privately informed buyers and capacities

My question seems to be a basic one and there should be a rather well-known reference in the (IO or labor) search literature. I will upvote (and comment on) any relevant answer and I will accept an ...
3
votes
4answers
136 views

Teaching ethics and its Economic value

Is there any literature that considers the benefits of ethical behaviour or teachings in Economics in terms of its value added to human capital? If there is no difference in value added, then is ...
7
votes
2answers
96 views

How can median wages be significantly different in two neighboring countries with open borders?

As an example, take Germany and Czech Republic. Both are members of the EU and therefore trade barriers between the two countries are minimal. However the median salary in Germany is nearly 3 times as ...
5
votes
2answers
103 views

Minimum Wage effects on Adjacent Cities

When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities? Are there examples, studies or accepted practices to address: Difficulty staffing ...
-1
votes
1answer
45 views

What is the maximal theoretically possible wage increase here and now (ceteris paribus)? [closed]

Labour unions are pushing for wage increase but what is maximal theoretically possible wage increase here and now - without restructuring production, processes and without introduction of new ...
2
votes
1answer
148 views

lowering minimum wage by half, effect on population of Puerto Rico

I am reading about a new bill to lower the minimum wage in Puerto Rico from \$7.25 to \$4.25 per hour. This comes at a time, when both the New York and California have chosen to raise their minimum ...
1
vote
2answers
61 views

How to explain these two discrepancies between BLS OES wage data and salaries of pro athletes?

I refer to the Occupational Employment Statistics published by the US Bureau of Labor Statistics, May 2015 edition. Under occupation title "Athletes and Sports Competitors" (27-2021), we have the ...
8
votes
4answers
1k views

Effect of minimum wage on higher levels of pay

Suppose the minimum wage increases to \$$x$. Is there any evidence on the effect (if any) this is likely to have upon the wage profile of workers higher in the hierarchy, who are already paid more ...
1
vote
1answer
24 views

What are the different patterns/quantity of employment according to demands of different income ranges?

I don't really have that much knowledge on economics or anything, so perhaps that's something I'd find an answer if I just knew the adequate terminology. Rephrasing/explaining my question: different ...
1
vote
1answer
50 views

Restrictions on goods and capital, but freedom of labour movement

I recently had a discussion with a left-wing friend in the UK about about Brexit, and the possible repercussions of restriction of labour when the UK leaves Europe. He argued that as someone who is ...
0
votes
2answers
654 views

Why are vacancy rate and unemployment rate negatively correlated?

Why is this the case? Since Vacancy rate is defined as following, let $A,Q,U$ denote number of vacancies in the economy, labor force, unemployed respectively. $$\frac{A}{A+Q-U}$$ Here we can see ...
2
votes
0answers
18 views

References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
2
votes
0answers
11 views

Why is three weeks of increasing jobless claims significant?

I see stories like this one on occasion in my news feed. http://www.bloomberg.com/news/articles/2016-10-27/jobless-claims-in-u-s-decline-for-first-time-in-three-weeks Mainstream news outlets never ...
1
vote
0answers
47 views

Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?

I have been doing a bit of research into the Goodwin Model (1967), which generates cycles of economic activity. I understand that this is mostly used in macroeconomics. However, I am curious if this ...
1
vote
0answers
33 views

Formal terminology for positive and negative correlation between ability of workers for different jobs?

Say there are two occupations - A and B, and plenty of workers. Let's pick occupation A, and order workers from lowest to highest ability/productivity. Which is the formal term to describe the ...
5
votes
1answer
112 views

Why is sugar cane still harvested manually in Brazil?

I read that up to 70% of Brazil's sugar cane in the Sao Paulo area is still harvested manually. Some workers are paid $1.50 per tonne. Why is it still being cut manually? Some possibilities: (1) farm ...
0
votes
1answer
29 views

Studying growth in US and Sweden, what variables should I watch out for in a regression? [closed]

I've be assigned a project on growth paradigms in US vs Sweden as part of my introductory course in econ. Can somebody please help me out with regression ideas?
4
votes
1answer
105 views

How does low population growth increase the effect of accumulated wealth

This passage comes from page 10 of the translation of Thomas Piketty's book Capital in the Twenty First Century: If the rates of population and productivity growth are relatively low, then ...
1
vote
1answer
27 views

Controling the level of hours worked in the multiplicative formulation of KPR

KPR preferences are generally given by $$ \frac{c^{1-\sigma}}{1-\sigma} \cdot v(l)$$ with $l$ being leisure. Let's focus on the case where $\sigma \in (0, 1)$, where we know that $v(l)$ must be ...
0
votes
0answers
115 views

Graphing Volunteer labour Supply

I'm wondering if there is a method by which we can visualize a firms decision to rely on volunteer labour. I have an idea but I'm unsure if it is correct, please tell me if there is an issue with my ...
0
votes
1answer
9k views

Why does the real wage = W/P?

Im reading about labour markets, and the notes mention that the real wage 'w' = W/P, where W = the nominal wage, and P = the price level. Could someone please use some 'W' and 'P' as an example to ...
2
votes
1answer
161 views

Value added by workers

Is there any empirical evidence on the value added by workers? That is, their "productivity" minus the wage payments, social security benefits etc. that are paid by the firm? I'm eventually looking ...
6
votes
6answers
429 views

Reconciling low wages with high technology and high education

This is one example of many recent doom storied prognosticating that the "millennial" generation will be the first in (recent) history to experience lower incomes than their predecessors—at least in ...
1
vote
1answer
74 views

Is the study of the volunteer sector inappropriate for a labour economist?

In the basics of labour economics the driving factor for increase in labour supply (for the workers in a given market) is increase in wages. The volunteer sector consists of general and skilled ...
1
vote
0answers
51 views

Identify absolute ability from a wage equation

Consider a simple model where the wage of a worker $i$ in period $t$ is: $$w_{it} = \theta_{t} a_{i}$$ where $\theta_{t}$ is the wage rate or efficiency wage per unit of ability, and $a_{i}$ is the ...
18
votes
5answers
2k views

Why are real median household incomes stagnant?

This image shows US real median household income. It seems remarkable for its lack of growth over the last 20 years. This has been the subject of much political debate (around the "1%" and "occupy ...
2
votes
1answer
196 views

Open/modern question in labor economics?

What are some of the modern lines of inquiry in labor economics and what are some good sources of them (especially, succinct ones)?
1
vote
0answers
22 views

Decentralization of business due to internet/mass communication, or mere bosses-at-a-distance?

Excuse my question if it sounds brutish and uneducated but I'm curious about the recent trend of businesses like Uber, Google Play Store, Apple Store, possibly even Craigslist (et al) which are more ...
21
votes
3answers
3k views

Why is collective bargaining by a group of employees not the same thing as price-fixing?

Employees sell their labor for wages. If a critical mass of employees get together and demand higher wages, how is this not the same thing as a critical mass of merchants illegally fixing the price of ...
3
votes
1answer
401 views

How does economic theory handle full automation of production resulting in full unemployment?

As advances in robotics and artificial intelligence continue, one possible outcome is a laborless economy, in which capital (means of production) is the dominant factor in production, by multiple ...
2
votes
1answer
128 views

How can we measure the size of the new uber-driver-type economy?

Uber has probably hundreds of thousands of drivers just in the US. There are many other gig economy firms growing quickly, not only lyft, but also Amazon Prime, bite squad, etc. Is there some place in ...
1
vote
0answers
1k views

What evidence is there that Adam Smith made mistakes in criticizing Mercantilism and upholding capitalism?

This commentator writes: On March 9, 1776, "An Inquiry into the Nature and Causes of the Wealth of Nations" (commonly referred to as simply "The Wealth of Nations") was published. Smith, a Scottish ...
2
votes
2answers
138 views

Term for fraction of economic value earned?

Is there a term for the fraction of economic value earned by a person in their labor that is due to their creation? For example, a car factory laborer who's work creates: Economic value created = $...
0
votes
1answer
61 views

Microeconomics: Question on Market for Factors

I am stuck and confused by a section of what I read in my textbook, could you please help me understand the paragraph? If you only vary one means of production and the market for it is competitive ...
4
votes
2answers
225 views

Which foreign workers in USA who send remittances to family are getting the best bang for their buck?

There are probably a lot of ways to measure that, but I want to measure it like this: Foreign national workers grouped by country of origin, which group sends the most money per capita in remittances? ...
3
votes
0answers
116 views

Causes of upward trend in median first marriage age in USA?

I found a chart here of median age at first marriage by year from 1890 to 2010. It looks like it dips to a low during the 60s then has an upward trend until 2010. As an answer, I'm looking for any ...
2
votes
0answers
28 views

How to overcome measurement error in variable for immigration year?

I'm using the Current Population Survey and studying immigration. There's a variable: Year of Entry into the United States for the Foreign Born. The survey is administered to a representative sample ...
1
vote
1answer
85 views

Division of labor vs division of work

Some authors makes the difference between these two terms. Could somebody explain what is the difference between division of labor and division of work?
1
vote
0answers
881 views

What does the elasticity of substitution between capital and labour mean?

For example, if i have elasticity of substitution equal to 5 and 0.6 what does it imply about the capital to labor ratio? When it is 5 does it imply that it is easier to replace labor with capital. As ...
3
votes
0answers
43 views

What models exist that explain which people emigrate to another country?

I'm looking for papers about this, or if there's a pretty standard model across many papers, then maybe just a rundown of the model. I'd like to use the model in an econometric analysis. For example, ...
1
vote
2answers
10k views

Finding labor supply function from equation of labor market [closed]

The supply side of the labour market is given by the following set of equations: Utility of worker is given by $$U = L^{\frac{1}{2}}C^{\frac{1}{2}}.$$ Real wage $w = 5$, T-Max = 40 hours, Investment ...
5
votes
2answers
7k views

Bartik Instrument Intuition

I have a question regarding the Bartik Instrument. I understand that this instrument is a particularly important tool that is used in labor economics. From my understanding, this instrument attempts ...